AT&T Inc. (T)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

AT&T Inc., FCFE calculation

USD $ in millions

	12 months ended	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Net income attributable to AT&T
	Net income attributable to noncontrolling interest
	Net noncash charges
	Changes in operating assets and liabilities
	Net cash provided by operating activities
	Capital expenditures
	Net change in short-term borrowings with original maturities of three months or less
	Issuance of other short-term borrowings
	Repayment of other short-term borrowings
	Issuance of long-term debt
	Repayment of long-term debt
	Issuance of other long-term financing obligations
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to AT&T Inc.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	AT&T Inc.'s FCFE declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

AT&T Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
Verizon Communications Inc.
P/FCFE, Sector
Fixed Line Telecommunications

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

AT&T Inc., historical P/FCFE calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	Verizon Communications Inc.
	P/FCFE, Sector
	Fixed Line Telecommunications

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of AT&T Inc.'s Annual Report.

2017 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	AT&T Inc.'s P/FCFE ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

	AT&T Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality